On February 22 we mentioned that the Biotech HOLDRs ETF was trading within a descending channel and that it would be interesting to see if it could head higher. As you can see from the chart below, the bulls were able to push BBH above the trendline today, which is now being used by traders to confirm buying opportunities found in other biotech stocks. For example, as you can see from the chart of TEVA (lower chart), it has also broken above the upper resistance of a descending trendline and now looks like it will go higher.

We've also added the MACD to the chart of TEVA, which has recently crossed above its signal line. This bullish crossover will also be used by the bulls as confirmation of further upward momentum

BBH_022706.jpg
TEVA_022706.jpg

You May Also Like

Related Analysis
  1. Mutual Funds & ETFs

    ETF Analysis: Market Vectors Pharmaceutical

  2. Fundamental Analysis

    American Express Returns Vs. DJ Industrial Average

  3. Fundamental Analysis

    20-Year Treasury Bond ETF Trading Strategies

  4. Mutual Funds & ETFs

    ETF Analysis: iShares FTSE/Xinhua China 25

  5. Technical Indicators

    How To Interpret The Volume Zone Oscillator

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!